Universal credit and childcare taken from salary

Jet

I’m looking to help my newly single step daughter with a universal credit claim.

She has a 2 year old daughter who she pays childcare for. However, my understanding is that she pays for the childcare directly from her pay packet before she receives her pay. (Her employer is a university with an on site crèche).

How will this affect universal credit? In her mind she doesn’t pay for childcare because she doesn’t physically pay it directly to the crèche but clearly this is a significant cost (4 days full day care) and reduces her net pay substantially.

Thanks.

Rubyroobs

Her employer should report her earnings to HMRC correctly before deductions for childcare and then provide her with an invoice for childcare which she will need to submit to Uc for help with the childcare element.

huckster

Agree with Rubyroobs.  When the employers report the payroll information to HMRC, the childcare should appear as a third party deduction which UC will ignore, so that UC takes into account the earnings without the Childcare deductions Then your step daughter reports childcare costs on her UC claim (under report a change of circumstances) and uploads childcare costs invoice plus proof of payment which will be the wage slip showing the deduction.